Gov. Tim Pawlenty says he is not anticipating good news when the latest state economic and revenue forecast is released on Nov. 30th.
Pawlenty says the likelihood of reduced tax collections will mean state government will have to further hold the line on spending.
"What we know for now, as it relates to oil prices, as it relates to the housing market, as it relates to the job numbers nationally and in Minnesota, it's softening and headed in the wrong direction so that's going to slow down everybody's budget and we just have to face up to that reality," Pawlenty said.
He spoke with reporters at the RiverCentre in downtown St. Paul where he made an appearance at the Hmong New Year's celebration.
As for the prospects of calling a special session to deal with local government funding and other issues, Pawlenty says it makes no sense if the revenue picture is going south.
"I really wasn't inclined to call a special session anyhow," Pawlenty said. "But now with the fact that the forecast (is) potentially heading in the wrong direction, it's all the more reason not to have people come into the state Capitol and spend more money."
Local government leaders have been critical of Pawlenty for not calling a special session to increase state aid to local governments.